Japanese instant and premixed food producer, Nagatanien, has acquired UK-based freeze dried food and specialty bread producer, Chaucer Food Group, in a deal worth $130 million.
Founded 36 years ago in Hull, England, Chaucer produces freeze-dried ingredients with a focus on fruit products that it supplies to global giants including Unilever, Nestlé, Starbucks, and Kellogg. The deal will give Chaucer the ability to expand its geographic reach while providing it with a channel through which to penetrate the Japanese market.
“Japan is a notably difficult market to penetrate so this provides us with a platform for entering that market, broadening our customer base and expanding our global footprint,” Chaucer CEO Andy Ducker told Food Navigator.
Ducker and the Chaucer management team will remain in place to lead the food group in its global expansion.
“The group is excited by the cross-selling and growth opportunities that this partnership opens up to both parties and I look forward to working with the Nagatanien team,” said Ducker.
Founded in 1953, Nagatanien is a leader in the production of instant and freeze dried foods including noodles, fried rice, and sushi seasoning which it distributes through Mitsubishi Corporation. Operating with 15 affiliate companies, Nagatanien sees this deal as a means through which to mitigate current market factors in Japan that are restricting growth.
“While the competition in the Japanese food industry is becoming more severe due to changes in the domestic market environment, such as sluggish growth in consumer spending, decreasing birth rate, aging population and growth in individualistic food consumption, there are positive trends in the overseas market population growth and diversification of food, including wider acceptance of Japanese food and trends towards healthier food,” said the company in a recent statement.
Growth Overseas
For Japanese operations seeking growth opportunities outside of their domestic market, this is an increasingly common strategic move.
In December 2015, Japan’s Zen-Noh Grain Corporation forged a 50:50 joint venture with GrainCorp headquartered in Calgary, Canada with the goal of expanding its presence in Canada’s grain market. Under the terms of the agreement the companies plan to establish and operate grain handling sites across Alberta and Saskatchewan with construction planned to start in the second half of fiscal year 2016, lasting until the end of fiscal year 2018, according to Bloomberg.
Japan’s Maruha Nichiro, the largest seafood company in the world by turnover, bought a minority stake in New Zealand-based fishing company, Sanford, in an off-market deal for NZ$25 million (US$17 million) in March of this year.
Soon after, in June of this year, Japan’s Yokohama Reito established an alliance with Norway’s Hofseth International through which the two acquired Norwegian trout farm, Fjordlaks Aqua for NOK 1 billion ($120 million).
And more recently, in July of this year, a joint venture partnership between Japan’s Marubeni Corporation, Showa Denko K.K., and Chiyoda Corporation announced plans to launch an indoor, artificially lit, vegetable factory business in Dubai.
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Lynda Kiernan